EU Scales Back Retaliation To US Tariffs
By Stefan J. Bos, Chief International Correspondent Worthy News
LUXEMBOURG (Worthy News) – The European Union said Monday it was scaling back its response to U.S. President Donald J. Trump’s tariffs on imported goods and even offered a “zero-for-zero” tariff deal to avoid a trade war.
The announcement by the EU’s executive European Commission came as EU ministers agreed to “prioritize negotiations” while striking back with 25 percent tariffs on only some U.S. imports.
EU trade chief Maros Sefcovic said Monday that the 27-nation bloc’s retaliation would impact less than the previously announced 26 billion euros ($28.4 billion). The tariffs for most of the goods will go into effect May 16 and some from December 1, giving more time for negotiations.
Ministers overseeing trade met in Luxembourg on Monday to debate the EU’s response and discuss relations with China.
Several ministers said the priority was to launch negotiations to remove Trump’s tariffs rather than fight them.
Michal Baranowski, Poland’s deputy economy minister, told a press conference after the meeting that his EU counterparts did not want to be “trigger-happy.”
Sefcovic stressed that talks with Washington were at an early stage and that he had offered “zero-for-zero” tariffs for cars and other industrial products, expressing hope that discussions could begin soon.
BILLIONS QUESTIONED
“The measures no longer add up to 26 billion euros,” Commissioner Sefcovic said at a press conference on Monday. “We listened carefully to the member states and aim to share the burden fairly.”
Brussels also intends to reinstate some retaliatory tariffs from Trump’s first term, including duties on jeans, Harley Davidsons, and bourbon, Worthy News established.
However, bourbon has reportedly been removed from the list after intense lobbying by Paris. The French government fears a backlash from Trump, who has threatened to impose a 200 percent duty on champagne in retaliation.
Insiders said the EU’s revised countermeasures are now worth about 20 billion euros ($21.9 billion), and a final decision is expected on Wednesday.
It followed another bloody day on financial markets, with indexes dropping in Europe and worldwide, although investors also bought stocks that dropped at record lows.
“U.S. President Donald Trump’s tariff ‘wrecking ball’ swung through financial markets again on Monday, sending investors scuttling for cover and wiping hundreds of billions of dollars more off the value of global stocks,” summarized Reuters news agency the situation.
And a wrecking ball it was.
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